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Adjusting for inflation
http://www.eiolca.net/forum/phpBB3/viewtopic.php?f=7&t=254
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Author:  hwalhout [ Sun May 04, 2008 10:57 am ]
Post subject:  Adjusting for inflation

How do I adjust for inflation, and when was the model last calibrated. When I enter 1,000,000 of economic activity, I am wondering if that is 2006 US dollars or 1997 US Dollars. Industry Benchmark US Dept of Commerce EIO model from 1997 is bolded and I presume that applies to the monitary values as well. With more than 10 years of inflation, do I have to adjust 2008 dollars back to 1997 dollars? For instance $1,000,000 of activity in 2008 would equate to approximately $700,000 in 1997.

Is my assumption correct?

What about the canadian (2002) model, do I have to calculate dollars back to 1997 dollars or 2002 dollars?

Please advise.

Author:  hwalhout [ Mon May 05, 2008 1:54 pm ]
Post subject:  Adjust current production cost to 97$

From the US$92 or US$97 answer it appears that all current production costs need to be adjusted to US$97. Can someone confirm that this is also the case for the canadian (2002) model?

Author:  clweber [ Fri May 09, 2008 9:14 am ]
Post subject:  inflation

All prices in all the models we currently have are in the year of the model, the base currency of the country which the model is from, and in terms of producer prices. (except for the purchaser price model available from the advanced site)
The proper way to adjust producer prices is using the producer price index for hte commodity you're interested in. (google U.S. producer price index and it should come up) For the base model you'd want to convert to 1997 U.S. producer price $. For the Canadian model, 2002 $CAN producer price.

Author:  qaziaurangzeb [ Thu Oct 03, 2013 10:44 pm ]
Post subject:  Re: Adjusting for inflation

Is it ok to solve the issue by apply an appropriate discount rate e.g. 4%.
so for 2013-2002 = 9 years, we have

Money2002 = Money2013* (1/(1+0.04)^9))

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